Equity and Efficiency in Multi-Worker Firms: Insights from Experimental Economics

Johannes Abeler; Steffen Altmann; Sebastian J. Goerg; Sebastian Kube; Matthias Wibral

Equity and Efficiency in Multi-Worker Firms: Insights from Experimental Economics

Johannes Abeler^*, Steffen Altmann, Sebastian J. Goerg, Sebastian Kube, Matthias Wibral

^*Corresponding author af dette arbejde

2 Citationer (Scopus)

Abstract

In this article, we discuss recent evidence from experimental economics on the impact of social preferences on workplace behavior. We focus on situations in which a single employer interacts with multiple employees. Traditionally, equity and efficiency have been seen as opposing aims in such work environments: individual pay-for-performance wage schemes maximize efficiency but might lead to inequitable outcomes. We present findings from laboratory experiments that show under which circumstances partially incomplete contracts can create equitable work environments while at the same time reaching surprisingly efficient outcomes.

Originalsprog	Engelsk
Tidsskrift	Analyse & Kritik: Journal of Philosophy and Social Theory
Vol/bind	2011
Udgave nummer	1
Sider (fra-til)	325-348
Antal sider	24
ISSN	0171-5860
Status	Udgivet - 1 dec. 2011
Udgivet eksternt	Ja

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Citationsformater

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AU - Abeler, Johannes

AU - Altmann, Steffen

AU - Goerg, Sebastian J.

AU - Kube, Sebastian

AU - Wibral, Matthias

PY - 2011/12/1

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N2 - In this article, we discuss recent evidence from experimental economics on the impact of social preferences on workplace behavior. We focus on situations in which a single employer interacts with multiple employees. Traditionally, equity and efficiency have been seen as opposing aims in such work environments: individual pay-for-performance wage schemes maximize efficiency but might lead to inequitable outcomes. We present findings from laboratory experiments that show under which circumstances partially incomplete contracts can create equitable work environments while at the same time reaching surprisingly efficient outcomes.

AB - In this article, we discuss recent evidence from experimental economics on the impact of social preferences on workplace behavior. We focus on situations in which a single employer interacts with multiple employees. Traditionally, equity and efficiency have been seen as opposing aims in such work environments: individual pay-for-performance wage schemes maximize efficiency but might lead to inequitable outcomes. We present findings from laboratory experiments that show under which circumstances partially incomplete contracts can create equitable work environments while at the same time reaching surprisingly efficient outcomes.

M3 - Journal article

AN - SCOPUS:84864789688

SN - 0171-5860

VL - 2011

SP - 325

EP - 348

JO - Analyse und Kritik

JF - Analyse und Kritik

IS - 1

ER -

Equity and Efficiency in Multi-Worker Firms: Insights from Experimental Economics

Abstract

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